Breaking News

Econet lashes out at banks on mobile money

by Business reporter
11 January 2013 | 6382 Views
ECONET Wireless Zimbabwe (Econet) has lashed out at banks for proposing amendments to government's banking reforms to include mobile money service providers, saying it was a selfish attempt by a clique of individuals to frustrate its operations.

Econet owns EoCash, a mobile payments service.

In his national budget statement Finance minister Tendai Biti said banks should, effective this year, not levy fees on deposits of less than US$800 and give 4% interest on deposits of at least US$1 000 held over 30 days. He also said banks should issue debit cards for free and scrap the deposit protection fund cap.

Bankers Association of Zimbabwe (Baz) said they would, among other things, incur huge losses as a result of the legal changes given that most of their income came from tariffs. In a position paper, Baz argued mobile money services should be bound by the same regulations in order to create a level playing field while recent media reports indicate bankers are lobbying for all mobile money services to be administered by a financial institution, otherwise they become direct competition to conventional banking.

Econet has responded by saying regulators should not be swayed by selfish interests of a minority group wishing to keep ordinary people from enjoying the benefits of their mobile money technology, while offering no meaningful alternative solutions or even willing to invest anything.

"Econet is aware there is a small number of individuals, mostly associated with one foreign-owned financial institution, who have lobbied intensely both before and after the introduction of this vital (EcoCash) service yet this very same institution, motivated only by what we believe is selfishness, has never shown any inclination whatsoever in its long existence in Zimbabwe to develop services that are inclusive and serve the majority of Zimbabweans," said the country's largest mobile network provider in response to businessdigest's questions.

"The so-called complaints of a small minority of banks are reminiscent of the complaints of the then PTC management when Econet founder Strive Masiyiwa was trying to introduce cellphones in Zimbabwe. If he had not fought tenaciously, over 10 million people would today not have access to a phone."




According to the mobile phone operator's statistics, EcoCash has enabled nearly two million Zimbabweans, the majority of who did not have bank accounts, to have access to basic financial services.

Most of the EcoCash subscribers live in rural areas where there are no banking facilities, making the facility their economic life line.

Econet EcoCash Mobile money Banks

Source: theindependent

Should airtime and street vendors pay the $1 a day State levy?

Yes
10.66%
No
80.2%
Desperation
9.14%
197

Comments

News Updates

Email:

Latest News

Man kills wife for denying him sex

by Staff Reporter | 02 August 2014 | 2835 Views

Sundowns wait on Monaco for Mahachi - MAMELODI Sundowns have yet to he...

by Staff Reporter | 01 August 2014 | 1375 Views

Kereke in $3,000 maintenance lawsuit - A Bulawayo woman has dragged Bi...

by Staff Reporter | 01 August 2014 | 1529 Views

Prostitution market shrinks - BRANDED the oldest profession in the wor...

by Staff Reporter | 01 August 2014 | 2717 Views

SA surrenders on Zim special permits - The South African government is...

by Nomalanga Moyo | 01 August 2014 | 4669 Views

Byo @ 120! - A celebration of 34 years of destruction

by Staff Reporter | 01 August 2014 | 1326 Views

Reliance on foreign aid undermines sovereignty says Mugabe - President...

by Staff Reporter | 01 August 2014 | 962 Views

Mugabe coup story, News Agency might sue - Johannesburg - CENTRE for A...

by Tintswalo Baloyi | 01 August 2014 | 3778 Views

Cops attend to dumped, burned corpse 12hrs later - WhatsApp update

by Concerned Resident | 01 August 2014 | 3041 Views

Undisputed Motherhood - The flexibility with which the ZANU PF approac...

by Caitlin Kamba | 01 August 2014 | 1311 Views

Zanu-PF Minister admit to rigging 2013 elections to move on punish tho...

by Wilbert Mukori | 01 August 2014 | 4676 Views

Israel Gaza Conflict, difficult to resolve

by Zanda Shumba | 01 August 2014 | 1489 Views

'Gono remains our choice,' says Zanu-PF - President Robert Mugabe's Za...

by Staff reporter | 01 August 2014 | 3304 Views

'Econet will not engage in price wars,' says Mboweni

by Staff reporter | 01 August 2014 | 1951 Views

A year on and we still have no idea what ZIMASSET is

by Ashirai Mtirikwi Mawere | 01 August 2014 | 1208 Views

Zanu-PF not treating Ndebeles as second class citizens - Some people ...

by Stewart Murewa | 01 August 2014 | 2969 Views

Passport scam at Zim's borders with South Africa and Botswana

by Hangoyapalala Wa Tjibundule | 01 August 2014 | 9534 Views

'There is no intelligence in Zimbabwe,' says Baba Jukwa

by Staff reporter | 01 August 2014 | 7514 Views

'Kraal and village heads belong to Zanu-PF,' says Obert Mpofu

by Staff reporter | 01 August 2014 | 2451 Views

Man loses $11,000 to sangoma - A Harare man reportedly lost more than ...

by Staff reporter | 01 August 2014 | 3042 Views

'Elections were flawed,' says top Zanu-PF official - DEPUTY Justice Mi...

by Staff reporter | 01 August 2014 | 3204 Views

'It was horror working with Tsvangirai,' says Mugabe - President Rober...

by Staff reporter | 01 August 2014 | 3456 Views

Student bashed to death by schoolmates over stolen cellphone - TERENCE...

by Staff reporter | 01 August 2014 | 2539 Views

Obert Mpofu attacks Zanu-PF VP selection process as undemocratic - AMB...

by Staff reporter | 01 August 2014 | 2842 Views

Makanaka Wakatama regrets early marriage - They say experience is the ...

by Farai Kuvirimirwa | 01 August 2014 | 4086 Views

Mugabe throws lavish party, as economy grinds to a halt - President Mu...

by Staff reporter | 01 August 2014 | 2002 Views

'I'm not sleeping,' says Chinamasa - IN a move that shows government h...

by Staff reporter | 01 August 2014 | 2630 Views

Mnangagwa seeks Gono alliance - SUCCESSION manoeuvres in Zanu-PF are i...

by Staff reporter | 01 August 2014 | 2553 Views

'ZBC will never be the same,' says Jonathan Moyo - MEDIA, Information ...

by Staff reporter | 01 August 2014 | 2334 Views

Entertainment

'Sons of Mzilikazi's' dedication

by Vusumuzi Ndlovu | 01 August 2014 | 1368 Views

Clash of the Giants Part 2

by Staff Reporter | 01 August 2014 | 2135 Views

Zim born Australian musician releases 5th album - Video

by Staff Reporter | 01 August 2014 | 1061 Views

Bulawayo born musician makes waves in UK - BULAWAYO-BORN musician Nom...

by Staff reporter | 01 August 2014 | 1567 Views

Miss Zimbabwe UK 2014 aims to raise bar in quality

by Staff Reporter | 29 July 2014 | 2242 Views

Gospel singer wants prostitution to be legalised - Controversial gospe...

by Staff reporter | 27 July 2014 | 4704 Views

Zimbabwean boy revels in Soul Brothers music

by Lovemore Dube | 26 July 2014 | 7763 Views